What effect does an insolvency process have on ongoing litigation and arbitration proceedings?
What effect does an insolvency process have on ongoing litigation and arbitration proceedings?

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • What effect does an insolvency process have on ongoing litigation and arbitration proceedings?
  • Brexit impact—cross-border insolvency (Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146)
  • Bankruptcy proceedings
  • Unique considerations in company insolvency proceedings
  • Power of a High Court judge to transfer proceedings
  • The effects of an arbitration agreement on insolvency proceedings
  • A mandatory stay under AA 1996, s 9
  • Referring a matter to arbitration under IA 1986, s 349A
  • Arbitration agreements in the cross-border context
  • Insolvency proceedings in another EU member state
  • more

This Practice Note discusses:

  1. the effect of an insolvency process on pending court proceedings in which the debtor, bankrupt or insolvent company is a claimant or defendant

  2. the interaction between an insolvency process and an arbitration agreement that is binding on the debtor, bankrupt or insolvent company

  3. additional considerations in a cross-border context

This Practice Note explains the law as it relates to bankruptcy proceedings and then goes on to set out the unique features in the case of company winding up.

Brexit impact—cross-border insolvency (Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146)

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. References to exit day in many Brexit SIs are to be read as reference to IP completion day (Implementation Period completion day, defined in clause 39 as 31 December 2020 at 11.00 pm) (unless that provision is expressly disapplied by the SI in question). For further details, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers and Brexit Bulletin—key updates, research tips and resources.

For cross-border insolvency, the Insolvency (Amendment) (EU Exit) Regulations 2019, SI 2019/146 have an impact. For